U.S. House Republican Accepts First Cryptocurrency Donations

The Republicans’ House campaign arm has announced its decision to begin accepting contributions in cryptocurrency. The campaign arm, National Republican Congressional Committee (NRCC), told Axios of this new development in its funding strategy recently.

The NRCC may be setting a record as the first national party committee to accept cryptocurrency donations but the concept is not entirely new in the US political ecosystem. Quite a few federal political candidates, like former presidential aspirant Andrew Yang and NRCC Chairman Tom Emmer, have taken crypto donations from supporters before.

The NRCC’s choice to be the first national party committee to solicit donations in cryptocurrency puts it at the forefront of disruptive financial technology. This is a move that could test the rules that have always governed how campaigns are financed. 

The organization has said the crypto donations would be used to support Republican candidates in the 2022 midterm elections.

The Donation Process

The NRCC spokesman, Michael McAdams, told Axios that the organization has partnered with BitPay, the Bitcoin and cryptocurrency payment service provider. BitPay will receive and process all the cryptocurrency contributions. They will immediately convert it into US dollars and send it to the NRCC account. 

In 2014, the Federal Electoral Committee (FEC) approved a $100 maximum value for transfers of actual cryptocurrency. Its involvement with BitPay means the committee will not actually handle the donated cryptocurrencies. This will allow it to accept individual donations of up to $10,000 per year. That is a lot more than the $100 value for transfers of actual cryptocurrency like Bitcoin that the FEC approves. 

So the reality is that the NRCC isn’t really collecting crypto, it’s only just accepting proceeds from sales.

What are regulators saying?

The FEC has voiced its concerns about the issue of the federal transparency and disclosure rules and the anonymity that is a core feature of cryptocurrencies.

On the other hand, newly appointed SEC Chief, Gary Gensler, has shared hints of the introduction of more stringent cryptocurrency regulations. However, the Securities and Exchange Commission (SEC) has displayed hesitancy towards the acceptance of cryptocurrency despite the observation that more than a few investment firms are pursuing Bitcoin Exchange Traded Funds (ETFs). 

NRCC’s Resolve

The NRCC, just like other political campaign committees that have asked for crypto contributions, intend to follow federal regulations. The committee has said it will diligently gather information to identify all individuals who use crypto to donate.

McAdams explained that the NRCC would “accept all the same personal relevant information that we do with any other contribution up to the normal contribution limits.”

The committee has reiterated its dedication to pushing its political agendas by any means possible. Its cryptocurrency donation scheme is a testament to this fact.

The NRCC chairman said that they “are focused on pursuing every avenue possible to further our mission of stopping Nancy Pelosi’s socialist agenda and retaking the House majority, and this innovative technology will help provide Republicans the resources we need to succeed.”

Emmer, who is also a co-chair of the Congressional Blockchain Caucus, and a member of the House Financial Services Committee is working hard to make cryptocurrency contributions to charity easier. He called on the IRS, recently to ease regulations on crypto donations to charity organizations.

NRCC’s cryptocurrency donation system takes a step out of the donation process. It allows an increasingly seamless transaction from crypto holdings to political contributions. With the transfer swiftness and uniform global value of each type of cryptocurrency, the NRCC may record higher donations. 

This development is one step higher in the relevance of cryptocurrencies in the economy and politics of the future.